If you are looking for ways to invest in your property and increase the value of your home, you may be considering the advantages of putting in a pool. Any improvement that you make to your home will add to its value, be it a simple landscaping project, a remodeled bath, or an elaborate in-ground pool. Nevertheless, some investments into your property will offer a higher return than others, for instance, you can increase the value of your home with a swimming pool.
While there is definitely a legitimate appeal to adding a pool to your landscape features but is it necessarily a prudent investment? What are the benefits and drawbacks? How much value for cost does a pool actually add to a home as compared to other improvements?
Return on Investment
Whether you are an avid swimmer, and occasional pool-side lounger, or strictly looking to increase your property value, you should approach the issue of adding a pool to your property from an investment standpoint. Pools offer a limited return for the associated cost. At best, you may see an added value of 50% of the actual cost of the pool. However, added features such as tanning shelves, slides, fountains and the like can dramatically increase the cost of the pool while offering little in the way of return. Such add-ons unquestionable increase the appeal of the pool to buyers, but the more costly the pool the lower the percentage of return you are likely to see.
Though pools don’t increase the value of property in the same way that other improvements can, they do increase the property’s marketability. In fact, this aspect is probably the most realistic reason for purchasing a pool. As such, adding an relatively inexpensive pool and focusing more on the deck and landscaping aspects around the pool can be the more prudent move (as these features generally offer a higher return). When it comes down to actual figures, a $40,000 pool is going to give you about the same benefit on the market as a $80,000 pool.
All Else Equal
In the housing market, a potential buyer is only going to be willing to pay so much above the base value of the house and property for the addition of a pool. Let us take an example of 3 comparable houses initially valued at $600,000, one with no pool, one with a $40,000 pool and one with a more elaborate $80,000 pool. The house with the $40,000 can expect to tack on an additional $20k to their asking price with reasonable expectation of success.
The house will still have more appeal and sell more quickly than the house with no pool, but stays within an acceptable price range. However, if the owner of the $80,000 pool attempts to add an additional $40,000 to the asking price of his home, he may find that he has trouble even getting anyone to even view the property. From the home buyer perspective a pool is generally a pool and the fancier set up is not going to be worth the extra cost. He may end up settling for an added value of significantly less than 50% of the cost of the pool just to stay competitive on the market.